A commodity exchange is a trade platform where various commodities and derivatives products are traded in orderly and organized fashion, with clearly specified and transparent rules.
Improvement of Farm gate prices as farmers become more informed about market and pricing information.
Farm productivity rises due to credit access.
Increase quality of production by rewarding better quality and consistency of crop.
Commodity exchange can cover a wide range of commodities from Agricultural produces and products to nonagricultural commodities such as minerals
Commodity exchange enable farmers and buyers adopt both spot trading and forward contract.